Dow Chemical Co has kicked off a process to sell its epoxy and chlorine businesses, hoping to find a single buyer for them in what is set to be a multibillion-dollar deal, according to people familiar with the matter. The Midland, Michigan-based company has hired Goldman Sachs Group Inc and Barclays Plc to manage the process, the people said this week, adding that calls to possible buyers began this week.Combined, the epoxy and chlorine businesses have annual earnings before interest, taxes, depreciation and amortization of close to $500 million, the people said.The value of assets is not yet clear. It will depend on if and how they will be carved out of their contractual arrangements and the tax implications of their separation, the people cautioned. Initial estimates place their value between $3.5 billion and $4 billion, the people added.Logical buyers might include companies in the sector such as Axiall Corp and Westlake Chemical Corp, as well as private equity firms experienced in chemicals such as Apollo Global Management LLC, the people said. Representatives for Axiall and Westlake did not respond to requests for comment, while Apollo declined to comment.
Apollo Global Management, LLC (Apollo) is a global alternative asset manager. Shares of APO fell by 1.45% or $-0.34/share to $23.12. In the past year, the shares have traded as low as $22.41 and as high as $36.51. On average, 1266040 shares of APO exchange hands on a given day and today's volume is recorded at 635196.
Barclays PLC (Barclays) is a global financial services provider engaged in retail banking, credit cards, wholesale banking, investment banking, wealth management and investment management services. Shares of BCS fell by 1.78% or $-0.27/share to $14.86. In the past year, the shares have traded as low as $13.96 and as high as $19.59. On average, 3133880 shares of BCS exchange hands on a given day and today's volume is recorded at 1275225.
The Goldman Sachs Group, Inc. (Goldman Sachs), is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Shares of GS fell by 2.17% or $-4.07/share to $183.74. In the past year, the shares have traded as low as $151.65 and as high as $188.58. On average, 2471930 shares of GS exchange hands on a given day and today's volume is recorded at 1769017.
Westlake Chemical Corporation, is a vertically integrated manufacturer and marketer of basic chemicals, vinyls, polymers and fabricated building products. Shares of WLK fell by 2.25% or $-2.07/share to $90.06. In the past year, the shares have traded as low as $51.74 and as high as $98.44. On average, 496839 shares of WLK exchange hands on a given day and today's volume is recorded at 423751.
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